Problem 1

The fixed cost of a company is $30,000 p.a. prime cost is $6 per unit.Variable Overheads are $4 per unit.Selling price is $20 per unit. Present sales are 20,000 units a year.Calculate the break-even point in sales and units.

Problem 2

Calculate the break-even point from the following particulars:

Budgeted output80,000 units

Fixed Expenses$45,000.

Variable Cot Unit$15.00

Selling Cost per unit$25.00

If the selling price is reduce to $20 per unit, what will be the new break-even point?

Problem 3

A factory manufacturing sewing machines has the capacity to produce 500 machines per annum. The marginal (variable) cost of each machine is $200, and each machine is sold for $250. Fixed costs are $12,000 per annum. Calculate the break even points for output and sales and show what profit will result if out output is 90% of Capacity.